NEW DELHI (INDIA): Realty firm Signature Global, which is into development of affordable homes, will invest Rs 500 crore to develop two housing projects in Gurgaon as the company expects better demand after the government announced an interest subsidy under the Pradhan Mantri Awaas Yojna.
The company last week launched two affordable housing projects comprising 2,405 units in a price range of Rs 18-24 lakh, Signature Global Chairman and Co-Founder Pradeep Aggarwal said.
Signature Global, one of the key stakeholders of financial investment firm SMC Group, is already constructing five housing projects comprising over 5,000 dwelling units in Gurgaon under the Haryana government’s affordable housing policy.
“We have launched two new affordable housing projects in Haryana. Total cost to develop these two projects will be about Rs 500 crore over the next four years,” he told .
Aggarwal said that the units in the two projects would be allocated to applicants through lottery and exuded confidence that the projects would be oversubscribed.
“We expect good response from customers who will be eligible for interest subsidy announced by the government under the Pradhan Mantri Awaas Yojana,” he said.
Asked about the funding, he said the investments would be met through internal accruals and Rs 150 crore raised from ICICI Prudential real estate fund last year.
On the progress of five projects launched earlier, Aggarwal said the first project would be launched in January-March quarter of next year.
In May last year, the company had raised Rs 150 crore from ICICI Prudential’s real estate fund. The amount was raised in debt form at group level, to be used for the development of its affordable housing projects and acquire new projects.
The company is exploring opportunities for affordable housing projects in Maharashtra, Gujarat and Uttar Pradesh besides Haryana.
Aggarwal said although the margin is less in affordable housing projects, the sales volume is higher.
To boost rural and urban housing post demonetisation, the Prime Minister had announced interest subsidy of up to 4 per cent on loans taken under the Pradhan Mantri Awaas Yojana.
In urban areas, housing loans of up to Rs 9 lakh and up to Rs 12 lakh will receive interest subsidy of 4 per cent and 3 per cent respectively, while in rural areas, loans up to Rs 2 lakh will get an interest subvention of 3 per cent.
Source: Press Trust of India